Lenskart IPO: Shares Open at 93% Discount
The shares of Lenskart, an Indian online eyewear retailer, listed on the National Stock Exchange (NSE) on Wednesday, opening at a 93% discount to its issue price. The company’s initial public offer (IPO) received a positive response from investors, with the shares jumping over 6% from their listing price.
According to reports, Lenskart’s CEO Peyush Bansal had said that it was never about valuation during the IPO process. The company aims to use the funds raised from the IPO to expand its online platform and increase its presence in the market.
Lenskart lists below issue price
The shares of Lenskart began trading at Rs 95 per share, which is a 93% discount from its initial public offer price of Rs 1,370 per equity share. The company’s stock was listed on the NSE’s smallcap segment.
Investor Sentiment
The positive response from investors suggests that they are optimistic about Lenskart’s growth prospects in the online eyewear market. However, some analysts have pointed out that the IPO process did not generate profits for investors due to high costs and market volatility.
Why Lenskart IPO failed to make profit for investors on market debut
Lenskart’s IPO was oversubscribed 11 times, with the company raising Rs 1,330 crore from the sale of 2.43 crore shares. However, the company’s share price fell sharply in the first few minutes after listing due to high demand and lack of liquidity.
The decline in the stock price is attributed to high costs associated with the IPO process, including investor fees and market making expenses. Lenskart has assured investors that it will focus on building its online presence and expanding its product offerings to improve profitability.
Key Points:
• Lenskart’s shares listed at Rs 95 per share, a 93% discount from the issue price of Rs 1,370.
• The company raised Rs 1,330 crore from the sale of 2.43 crore shares in the IPO process.
• Lenskart’s CEO Peyush Bansal had said that it was never about valuation during the IPO process.
For investors who have invested in Lenskart’s IPO, it is essential to monitor the company’s progress and adjust their investment strategy accordingly. As the company focuses on building its online presence and expanding its product offerings, investors can expect a potential turnaround in the stock price. However, market volatility and competition from established players in the eyewear industry will continue to pose challenges for Lenskart.
In conclusion, while the IPO process has generated excitement around Lenskart’s growth prospects, investors must be cautious due to high costs and market risks. A thorough analysis of the company’s financials, marketing strategy, and competitive landscape is essential before making any investment decisions.
